Question

Riya has an account with a bank. Following are the entries from her pass-book:

$\begin{array}{ccccc}Date& Particulars& WithdrawalsRs.p.& DepositsRs.p.& BalanceRs.P.\\ 08-02-08& B/F& -& -& 8500.00\\ 18-02-08& Toself& 4000.00& -& -\\ 12-04-08& ByCash& -& 2238.00& -\\ 15-06-08& Toself& 5000.00& -& -\\ 08-07-08& Bycash& -& 6000.00& -\end{array}$

Compute the page of her pass book and therefore calculate the interest for six months, which is from the month of February to July 2008 at 4.5% per annum.

• A. Rs. 145.75
• B. Rs. 121
• C. Rs. 121.25
• D. Rs. 111.45

Answer 1

The correct option is D

Rs. 111.45

Riya’s pass-book entries:

$\begin{array}{cccc}\text{Month}& \text{Balance of the month}& \text{Minimum balance between 10th to the last day of the month.}& \text{Qualifying Balance.}\\ February& Rs.8500.00,Rs.4500.00& Rs.4500.00& Rs.4500.00\\ March& Rs.\mathrm{4500.00.}& Rs.4500.00& Rs.4500.00\\ April& Rs.4500.00,Rs.6738.00& Rs.4500.00& Rs.4500.00\\ May& Rs.6738.00& Rs.6738.00& Rs.6740.00\\ June& Rs.6738.00,Rs.1738& Rs.1738.00& Rs1740.00\\ July& Rs.1738.00& Rs.7738.00& Rs.7740.00\\ Total& & & Rs.29720.00\end{array}$

Total principal for 1 month = Rs. 29720.00 = P, T = $\frac{1}{12}$, R = 4.5%.

Interest = $\frac{\left(PRT\right)}{100}$= Rs. $\frac{297200\times 4.5\times \frac{1}{12}}{100}$ = Rs. 111.45.